Tweet
Every dollar counts
KEN CHAPLIN
Tuesday, February 26, 2008
Some time ago, a point of view was expressed in this column that corruption is encouraged when a new government fails to expose the corrupt practices of the previous government. In Jamaica's political history, until now, a great deal of cover-up was accorded to the outgoing government by the new government which appears to have been by tacit agreement. As a result, corruption continued unabated and increased in some areas.
KEN CHAPLIN
The new Jamaica Labour Party government has rightly changed this course, and is exposing corruption in the People's National Party's past administration over the last 18 years. Of course, many comrades have not welcomed this approach to governance and have argued for the government to soften its position.
For example, Peter Bunting, member of parliament and newly elected general secretary of the PNP, has put forward the position that it is a waste of time for members of the Public Accounts Committee of Parliament to discuss small amounts of money which were overpaid to government employees. The essential point is that the country has a right to know of any discrepancy in government's accounting and any money stolen or wasted, and the information deriving therefrom given wide publicity.
This approach should help to check corruption in government. If one were to tally the amount of taxpayers' money stolen over the past 18 years, it would be sufficient to improve many roads or the health service. The position taken by Bunting was not a good start for him in the area of fiscal accountability as a parliamentarian and might have given the wrong impression. One hopes that if or when the PNP becomes the government again it will not delay investigation of any impropriety in the JLP administration. We must rid this country of government corruption.
Forensic audit of FINSAC necessary
Everyone should welcome the decision of the government to have a forensic internal audit of the Financial Sector Adjustment Company Ltd (FINSAC) and the Financial Institutions Service Ltd. The two bodies were created by the previous PNP government to expedite resuscitation of failed banks in the meltdown of the financial sector in the 1990s and to restructure the sector. The reasons for the damaging effect of the meltdown are well known, one of which was high interest rates at the time. Interest rates rose to as high as 50 per cent and borrowers found it difficult to repay the banks. FINSAC moved in, captured and sold the assets of delinquent borrowers to a foreign firm cheaply, but not all of this was recorded for dissemination to the public.
As a depositor with investments in Century National Bank (CNB), I must admit that I had difficulty in being objective in the columns I wrote about FINSAC. For example, I was paid back all my balance in the bank except one year's interest which came to a substantial sum. I wanted information for my column on how many politicians withdrew their deposits a few hours before CNB was closed down, and which politicians were released of their debts to banks after FINSAC took over.
FINSAC refused to give the information, citing the banking laws. PJ Patterson, prime minister at the time, promised to give the information to Parliament, if others in the private sector made similar public disclosure. Of course, this did not happen either way.
Finance Minister Audley Shaw says that the purpose of the audit is to report on the probity, propriety and mismanagement decisions made by FINSAC, and whether the government of Jamaica suffered any loss that could have been avoided. However, having regard to the damage the financial meltdown caused to the economy and to people, the investigation should be widened to include all the factors which caused the meltdown. The full story needs to be told so that the country can avoid taking a similar course in the future.
Spencer case could check PNP's drive for power
The question being asked in political circles is why the PNP government, which had a good record of probity before 1992, has had so many charges of corruption levelled against it. There is only one answer: the government must have felt that after 18 years in office it would continue for many, many more years, if not forever. Apparently, many people became corrupt believing that their government would be in office forever. But it so happened that last year Pandora's box began to be opened by the new JLP government.
Some of the things done by Kern Spencer, junior minister in the PNP government, in his management of the Cuban light bulb distribution, many of which Contractor General Greg Christie says warrant criminal investigation, were foolish and brazen. Spencer, instead of taking leave from the House of Representatives, should have resigned or been forced to resign long ago to spare the PNP Opposition embarrassment. However, Spencer's resignation would leave the Opposition with 27 seats in the House of Representatives instead of 28 to the JLP's 32. If the PNP wins at least two of the dual citizenship cases against sitting JLP members of parliament, the tally would be 30-30 which would have serious political implications. But Spencer's resignation would leave the count: JLP 30, PNP 29, a slim majority of one for the time being.
KEN CHAPLIN
Tuesday, February 26, 2008
Some time ago, a point of view was expressed in this column that corruption is encouraged when a new government fails to expose the corrupt practices of the previous government. In Jamaica's political history, until now, a great deal of cover-up was accorded to the outgoing government by the new government which appears to have been by tacit agreement. As a result, corruption continued unabated and increased in some areas.
KEN CHAPLINThe new Jamaica Labour Party government has rightly changed this course, and is exposing corruption in the People's National Party's past administration over the last 18 years. Of course, many comrades have not welcomed this approach to governance and have argued for the government to soften its position.
For example, Peter Bunting, member of parliament and newly elected general secretary of the PNP, has put forward the position that it is a waste of time for members of the Public Accounts Committee of Parliament to discuss small amounts of money which were overpaid to government employees. The essential point is that the country has a right to know of any discrepancy in government's accounting and any money stolen or wasted, and the information deriving therefrom given wide publicity.
This approach should help to check corruption in government. If one were to tally the amount of taxpayers' money stolen over the past 18 years, it would be sufficient to improve many roads or the health service. The position taken by Bunting was not a good start for him in the area of fiscal accountability as a parliamentarian and might have given the wrong impression. One hopes that if or when the PNP becomes the government again it will not delay investigation of any impropriety in the JLP administration. We must rid this country of government corruption.
Forensic audit of FINSAC necessary
Everyone should welcome the decision of the government to have a forensic internal audit of the Financial Sector Adjustment Company Ltd (FINSAC) and the Financial Institutions Service Ltd. The two bodies were created by the previous PNP government to expedite resuscitation of failed banks in the meltdown of the financial sector in the 1990s and to restructure the sector. The reasons for the damaging effect of the meltdown are well known, one of which was high interest rates at the time. Interest rates rose to as high as 50 per cent and borrowers found it difficult to repay the banks. FINSAC moved in, captured and sold the assets of delinquent borrowers to a foreign firm cheaply, but not all of this was recorded for dissemination to the public.
As a depositor with investments in Century National Bank (CNB), I must admit that I had difficulty in being objective in the columns I wrote about FINSAC. For example, I was paid back all my balance in the bank except one year's interest which came to a substantial sum. I wanted information for my column on how many politicians withdrew their deposits a few hours before CNB was closed down, and which politicians were released of their debts to banks after FINSAC took over.
FINSAC refused to give the information, citing the banking laws. PJ Patterson, prime minister at the time, promised to give the information to Parliament, if others in the private sector made similar public disclosure. Of course, this did not happen either way.
Finance Minister Audley Shaw says that the purpose of the audit is to report on the probity, propriety and mismanagement decisions made by FINSAC, and whether the government of Jamaica suffered any loss that could have been avoided. However, having regard to the damage the financial meltdown caused to the economy and to people, the investigation should be widened to include all the factors which caused the meltdown. The full story needs to be told so that the country can avoid taking a similar course in the future.
Spencer case could check PNP's drive for power
The question being asked in political circles is why the PNP government, which had a good record of probity before 1992, has had so many charges of corruption levelled against it. There is only one answer: the government must have felt that after 18 years in office it would continue for many, many more years, if not forever. Apparently, many people became corrupt believing that their government would be in office forever. But it so happened that last year Pandora's box began to be opened by the new JLP government.
Some of the things done by Kern Spencer, junior minister in the PNP government, in his management of the Cuban light bulb distribution, many of which Contractor General Greg Christie says warrant criminal investigation, were foolish and brazen. Spencer, instead of taking leave from the House of Representatives, should have resigned or been forced to resign long ago to spare the PNP Opposition embarrassment. However, Spencer's resignation would leave the Opposition with 27 seats in the House of Representatives instead of 28 to the JLP's 32. If the PNP wins at least two of the dual citizenship cases against sitting JLP members of parliament, the tally would be 30-30 which would have serious political implications. But Spencer's resignation would leave the count: JLP 30, PNP 29, a slim majority of one for the time being.
Comment